A deceased person’s property will often be inherited by his/her legal heirs if he/she died intestate (without leaving a will). Afterward, it is up to the heirs to decide what to do with that property. In the event that the heirs decide separate property is the best option, any co-owner can relinquish his share in favor of the other owner if he does not wish to keep it. An owner relinquished property to another with the approval of the owner by relinquishing it.
Definition of a relinquishment deed
In the event of an heir giving up or releasing his legal rights to an inheritance property after he inherits it from his parents, he has signed a will that gives that right to another legal heir, such as a son, daughter, brother or sister, that inherits the property after he inherits it from his parents.
Each co-owner relinquishes a share of property for the benefit of the other co-owners when he or she relinquishes their rights, titles, and interests. This enhances the other co-owners’ shares.
Relinquishment Deed Elements
- Legal document: When heirs relinquish their legal right to a property, the property is transferred from one generation to another, or the property is given to another generation.
- Consequences: When a co-owner has their rights transferred, the shares of each co-owner are enlarged, as their share of the company is released.
- Irrevocable: If the property is owned by more than one person, a release or relinquishment is valid even if there was no consideration given.
- Relinquishment cannot be done in favour of a 3rd person: Those who are not co-owners of the property, and who wish to relinquish their property, will be treated as gifts under the law if they do so. People who are not co-owners will be treated as if they were given the property as a gift.
- Must be in writing: There must be at least two witnesses who witness the signing of the relinquishment deed in joint property which contains the written surrender of the right to immovable property.
- Must be registered: Section 17 of the Registration Act, 1908 requires registration of the relinquishment deed at the sub-registrar of the property’s jurisdiction in order to release rights in immovable property.
- Consideration: The deed of relinquishment cannot be accompanied by any consideration in any form.
- Easy process: Relinquishment deeds can be prepared and registered in a few days.
Relinquishment of property
Only someone with a share in a property can relinquish it. If there are more than one owner in a property, either co-owner can relinquish the property. In addition to compensation, a valid relinquishment must adhere to the essentials of a valid contract.
Registration of a Relinquishment Deed
In the Registration Act, 1908, Section 17 provides for the issuance of a relinquishment deed by a person to use for the benefit of another person a provision that describes a legal document that purports to set aside his or her claim in writing for the benefit of that other person.
Ideally, if you know the legal terminology and methodology, a lawyer can draft the relinquishment deed for you, however if you do not know the terminology and methodology, you can also draft the deed on your own. In order to register this type of deed, the following steps must be taken:
- In preparing the relinquishment deed, it is important to include a full description of the relinquished property. Stamp paper with a denomination of Rs.100 should be used to prepare the relinquishment deed.
- Sub-Registrar of Assurances must be notified that the deed has been prepared on stamp paper and needs to be registered with the sub-registrar of assurances whose jurisdiction encompasses the property once it has been prepared. Each state charges between $100 and $250 for registration, which varies from state to state. Registration fees vary from state to state but generally range between $100 and $250.
- Upon preparing the deed on stamp paper, the subregistrar of assurances in the state of the property must register it after it has been submitted to the subregistrar. Registration fees vary from state to state, but are typically between Rs. 100 and Rs. 250.